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Last Updated: Monday, 20 October, 2003, 05:53 GMT 06:53 UK
Job cull fears at Sony
Sony webgrab of lady using a camera
Consumer demand has been falling
Japanese electronics giant Sony is set to cut between 15,000 and 20,000 jobs within the next three years, Japan's leading financial newspaper has reported.

Sony confirmed it would announce a sweeping restructuring next week, including job cuts and domestic television plant closures, but would not comment on the scale of the job losses.

"Job cuts and plant closures definitely will be included, but details, like the time frame for the plant closures, have not been finalised," one company source told Reuters.

Sony shocked investors in April with a quarterly loss of almost $1bn.

The firm is struggling to cope with weak demand for its consumer products, and its electronics division has been plagued by high costs and mounting inventories.

Changing demands

Sony once dominated the television industry but failed to spot the shift in demand towards flat-screen TVs with liquid crystal display (LCD).

The Nihon Keizai Shimbun newspaper reported that Sony would announce a joint venture with South Korea's Samsung to make LCD screens for televisions.

As well as struggling to keep up with changing fashions, Sony has also been badly hit by the economic downturn in the US, its key export market.

Sony will announce its new business strategy and restructuring on 28 October.

It has a global workforce of 160,000 at present.

Sony profits plunge 98%
24 Jul 03  |  Business
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24 Jul 03  |  Technology
Sony shares plunge 15%
28 Apr 03  |  Business

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